The DEC'09 GOLD contract bounced back into a digestive trade but remains in a questionable position below the 950.7-949.2 Inflection Pivot. If the MKT is going to fall back into a soft spot it will struggle to maintain a trade above here. A break below 941.2 is a sign of weakness that puts the 935.3 support in jeopardy targeting 926.1 and 921 on any turn for the worse. Use caution. Emotional trading conditions are expected. 905 and 884.8-880.6 are the extended targets.
A held rise above 950.7 signals more difficult sideways action up to 963.1-961.4. Be patient. Although a reaction is expected, trading at these levels is a sign of strength. If the MKT does not quickly turn tail after a test of the 963.1-961.4 resistance and the positive momentum will start to feed on itself putting the 990.3 and 996.8 resistance back in play.
JS
This post supports JS Services Strategy Based Trading approach. For more information please contact me at info@jsservices.com. You can also visit http://www.jsservices.com/.The Inflection Pivot levels are available as a chart overlay on the following platforms; Ninja trader, Strategy Runner and eSignal. Sign up for a Complimentary Trial.
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